This thesis employs difference-in-difference specified hedonic regression and quantile regression to examine the impact of infill development on nearby housing prices. In addition spillover channels, particularly the role of service level of the area and loss of open space, are examined. The research sample is taken from Hintaseurantapalvelu and contains multi-story apartment transactions made between 1/2012 and 2/2017 in Helsinki, Espoo or Vantaa. Residential infill projects are defined from the sample as targets where at least two apartments have been sold and locates maximum 100 m away from a residential multi-story building that has been constructed before the year 2000.

The study found that in the next year after the completion of an infill development project 0.9 % premium was paid on apartments within 300 m radius compared with treatment group, which were similar by means of structural and locational attributes but they were outside the radius. Nevertheless, premium disappears when standard erros are clustered by postal code area or the radius is changed to 100 or 500 m. Therefore the model is vulnerable to specifications and premium is only observed with insufficiently specified model. The amount of park area inside the buffer radius of 200 m was not a statistically significant predictor on apartment prices but the park variables calculated from OpenStreetMap data are not kept trustworthy.